Master the 1-Minute Scalping Strategy: Earn $100 to $600 Daily

This One Minute Scalping Strategy: A Simple and Profitable Approach for New Traders

Are you a new trader looking for a simple and effective strategy? Or perhaps you’re an experienced trader looking to have some fun with scalping on the one-minute timeframe? Look no further! In this article, we will explore a one-minute scalping strategy that is not only easy to understand and implement but also highly profitable. So, buckle up and get ready to learn a strategy that could potentially boost your trading game.

Setting Up the Strategy

The first step in using this strategy is to open a blank chart and set the timeframe to one minute. Once you have done that, you will need to add two indicators: Bollinger Bands and the Awesome Oscillator.

To add the Bollinger Bands, go to the indicators section and search for “Bollinger Bands.” Once you find it, add it to your chart. Similarly, search for “Awesome Oscillator” and add it as well. These two indicators will be the key tools for executing this strategy.

Understanding the Strategy

Now that we have set up the necessary indicators, let’s dive into how this strategy works. The first step is to wait for the price to either touch or pierce the upper or lower Bollinger Bands. These bands are represented by the green lines on the chart. It is important to note that we only consider entering a trade when the price interacts with these bands.

The next step is to look for a confirmation signal called a divergence. If we are looking for a short trade from the upper Bollinger Band, we want to see a bearish divergence. On the other hand, if we are looking for a long trade from the lower Bollinger Band, we want to see a bullish divergence.

But what exactly is a divergence? A divergence occurs when the price and the oscillator (in this case, the Awesome Oscillator) move in opposite directions. It indicates a potential weakness in the current trend. For example, a bearish divergence occurs when the price makes a higher high, but the oscillator makes a lower high. This suggests that momentum and money are leaving the market, signaling a possible correction.

Now, you might be thinking, “Why are we talking about butt cheeks?” Well, bear with me. Imagine the price as a waitress hanging upside down from the ceiling, and her butt cheeks represent the divergence pattern. When the price is getting higher and higher, but the oscillator’s highs are getting lower and lower, it creates an uneven butt cheek pattern. This unevenness indicates a bearish divergence and suggests a potential downside move. Similarly, a bullish divergence occurs when the price makes a lower low, but the oscillator makes a higher low, creating a pattern of juicy, uneven butt cheeks.

Executing the Strategy

Now that we understand the concept of divergences, let’s put this strategy into action. Once the price touches or pierces the Bollinger Bands, and we have a confirmed divergence, we can enter the trade. It is important to note that we don’t have to wait for a candle close or additional confirmation. As soon as we see the price interacting with the bands and a confirmed divergence, we can enter the trade.

To manage our risk, we will set our stop loss below the last low (for short trades) or above the last high (for long trades). It is recommended to give the trade a little breathing room, but ultimately, the stop loss should be placed strategically to protect our capital.

For take profit targets, we will aim for the upper Bollinger Band for short trades and the lower Bollinger Band for long trades. These levels act as potential reversal points, and by targeting them, we can secure a favorable risk-to-reward ratio.

It’s important to note that as the price moves, the Bollinger Bands will also adjust. Therefore, we need to be proactive and adjust our take profit levels accordingly. By dragging our limit orders to meet the Bollinger Bands, we can ensure that we exit the trade at the desired price without incurring additional fees.

Why This Strategy Works

Scalping strategies, like this one-minute scalping strategy, can be highly profitable due to their ability to capture small price movements. With a tight stop loss and a favorable risk-to-reward ratio, even small gains can result in significant profits when trading with larger position sizes.

By stacking up these small gains throughout the day, traders can offset any losses and end up with a net profit. Additionally, utilizing zero percent limit fees, such as those offered by Bybit, can further enhance the profitability of scalping on low-time frames.

Conclusion

In conclusion, the one-minute scalping strategy is a simple yet profitable approach for traders, especially those who are new to the market. By waiting for price interactions with the Bollinger Bands and confirming with divergences, traders can enter trades with a favorable risk-to-reward ratio. With careful risk management and proactive adjustments, this strategy can yield consistent profits throughout the day.

Frequently Asked Questions

Q: Is this strategy suitable for beginners?

A: Yes, this strategy is great for beginners as it is simple to understand and implement. However, it is always recommended to practice on a demo account before trading with real money.

Q: Can I use this strategy on other timeframes?

A: While this strategy is specifically designed for the one-minute timeframe, it can be adapted to other timeframes as well. However, it is important to note that the effectiveness of the strategy may vary on different timeframes.

Q: How many trades can I expect to take in a day using this strategy?

A: The number of trades you can take in a day using this strategy will depend on market conditions and the number of valid setups you encounter. It is recommended to focus on quality setups rather than quantity.

Q: Can I use this strategy for other financial markets?

A: While this strategy is primarily designed for cryptocurrency trading, it can be applied to other financial markets as well. However, it is important to consider the specific characteristics and dynamics of each market before implementing the strategy.

Q: How do I manage my emotions while scalping?

A: Scalping can be an intense and fast-paced trading style, which can lead to emotional decision-making. It is important to stick to your trading plan, set realistic expectations, and practice proper risk management to avoid emotional trading.